1、 Present situation

Although we all hope that the blockchain can be implemented as soon as possible, and from the daily news, we seem to see that some blockchain products have been implemented one after another, such as Tencent’s blockchain invoice, the central bank’s blockchain based digital bill system, Alibaba’s blockchain based cross-border remittance system, etc.

Such news gives us the impression that the blockchain seems to have been implemented in many aspects, and it is not far from large-scale implementation. However, when we go deep into these projects, there are not too many blockchain elements in these projects. Their implementation is more based on the original energy of traditional Internet giants and made some technical improvements.

In other words, their success may be difficult to learn from ordinary small and medium-sized blockchain projects, but only when small and medium-sized blockchain projects can be launched on a large scale and really started to be used, can it be called the landing of the blockchain industry, and we may be far from this day.

This is mainly reflected in the fact that the infrastructure of the blockchain is still very imperfect and inhuman. When the blockchain is launched on a large scale, it must be when many people participate and when the blockchain can benefit everyone. At that time, the requirements for infrastructure were very high. Just like the Internet, if today’s Internet still uses DOS system or command line mode, and there are no e-mail and wechat, it is impossible for you to achieve great business success on the Internet and connect everyone with the Internet, but the current blockchain is in this situation.

Personally, I think the blockchain industry needs to be greatly improved in the following aspects at least:

2、 Account, password

Account and password are problems encountered in every project, and it is also a very troublesome problem. It is impolite to say that the current blockchain account and password system can successfully “persuade” half of the people who want to participate.

At present, many blockchain projects are account systems based on public and private keys. With the help of mnemonics, if you have a private key, you have assets, and if you lose a private key, you lose assets.

But the private key and mnemonic words are a little anti human. For example, the private key is so long that it is impossible to remember an irregular string of numbers and letters by the human brain, so you must use other memory means. For example, in the physical way, write down the private key on paper, and then the problem becomes how to save the paper: I’m afraid to lose it in my notebook and steal it in the safe. Even without these accidents, the paper will naturally turn yellow after ten or twenty years. If the private key of a huge sum of money has not been moved for a long time, it’s not sure whether it can be found back in ten or twenty years.

If stored online, once online, it will face various risks of being stolen by hackers. The security of this way is not as good as that of the exchange. At least, the risk control ability of large exchanges is stronger than that of ordinary individuals.

Even without considering the problem of theft, the input of private key is also a big trouble. So many letters have to be input one by one, checked one by one, and checked for a long time. This account password system is too anti-human, although it is a very sophisticated and secure design.

In order to popularize blockchain on a large scale, we must first solve this problem, not only retain the security of the current public-private key password pair, but also facilitate human brain memory. At the same time, if it is lost, there must be a way to find it back. There must be some way to do this, such as mapping the private key with personal biometric fingerprint, eye mask and other things, or finding it through big data, social relations and other methods. The specific implementation methods may be different, but the goal is the same, which is to greatly reduce the difficulty of ordinary users.

3、 Payment mode

In the Internet age, there is a popular classic saying called “wool comes from pigs and dogs pay”. The main mode of the Internet is free. It relies on free traffic to attract traffic and other businesses to make profits.

Users in the Internet age are basically used to the free mode, but now all blockchain transactions are handled by users, which is troublesome and technically complex. For example, if you want to use Ethereum’s gas system, you must have Ethereum first. If not, you must buy Ethereum first, that is, you must go to the exchange and come back. Some novice friends may just want to simply use a function of Ethereum. He may not be familiar with the function of the exchange, but there is no way. If you want to use this function, you have to buy it first.

Ethereum is relatively simple, and the settings of EOS CPU and net are more complex. Let alone new friends, even the “old birds” who have been mixed for one or two years can easily “get lost”.

There must be corresponding technologies to greatly optimize the trading habits of the blockchain, such as changing from the current user payment mode to merchant payment, but in fact, users pay in the end, because they will eventually be passed on to consumers, but in this way, the user experience will be much better, unnecessary procedures will be saved, and it is more in line with consumer psychology.

4、 Stable currency

The volatility of digital assets on the blockchain is very high. There needs to be something that can keep the value stable and give a value anchor.

Although we now have usdt and usdt can complete the task better, usdt is anchored in US dollars after all. A price conversion procedure needs to be added between US dollars and RMB, which has some trouble. Moreover, it is not so obvious in currency transaction. If digital assets can be connected to real business one day, we will find the inconvenience of usdt, because there are few goods priced in USD in domestic real business.

The central bank’s DCEP can solve this problem, but at present, the central bank’s DCEP is still very different from usdt, and there are still many questions about the amount and whether it supports digital currency transactions, so we can only wait and see and wait for its implementation.

Of course, in fact, there is no need to wait for DCEP. As long as Alipay can open the digital currency payment interface, this problem can be basically solved, so the issue is not technical, but policy.

5、 Decentralized exchange

At present, our centralized exchange has been relatively mature, and the decentralized exchange is also developing in full swing, but I think the current decentralized exchange generally lacks a dimension.

Although the efficiency and depth are far lower than those of centralized exchanges, some decentralized exchanges are basically available, and these exchanges basically focus on safety. Security means that you are in charge of your private key. Unless your private key is leaked, your assets will always be yours. Even if the exchange is stolen, your assets will not be stolen, so you can completely solve the theft of the exchange.

However, along with security, there is the feature of anonymity. At present, many decentralized exchanges can conduct transactions without real name system, and can conduct large-scale asset transfer without exposing their identity. In this way, it is easy to become a hotbed for various criminals such as money laundering. If this behavior is not restricted, The impact on the whole economic system is also very large.

For decentralized exchanges, what we really need is the technology behind it, such as utxo account system, such as the public and private key system that allows us to manage assets, such as its efficient confirmation feature, etc. these technologies are the real advantages of decentralized exchanges. Security is the core feature of decentralization, not anonymity.

What we are talking about here is not that we should not be anonymous, but that we should not be absolutely anonymous. For example, we can use technical means to ensure that our true identity is not exposed in the process of all transaction transfer. Even major exchanges, decentralized exchanges and counterparties do not know our true identity, but at the bottom, that is, there must be real name identity in the police and government organs, Because we should ensure that when there is a real accident, if we want to trace the identity, we can trace it.

How to coordinate anonymity and decentralization, and how to combat criminal acts while ensuring the characteristics of decentralization (because we may become the victim one day), is a very challenging topic.

6、 Financing

Financing is the throat of the development of the whole industry. After all, capital is like grain and grass. “Grain and grass go first before soldiers and horses”. Once the acupoint of financing is opened, the whole industry will develop rapidly.

However, at present, the state is very strict about financing, because after all, it is the early stage of industry development, and there are many chaos in the industry. The formulation of government rules and the introduction of laws also need a process. In the future, some conditions are needed for the reopening of the financing market of the whole blockchain industry.

First of all, the normalization of blockchain financing must have taken place under the background of the comprehensive shift of China’s capital market to the registration system. On December 28, 2019, the revised draft of the securities law was voted and adopted at the closing meeting of the 15th meeting of the Standing Committee of the 13th National People’s Congress. The revised Securities Law clearly stipulates that the registration system will be fully implemented in the capital market, which is a very important premise. At present, China’s new third board and science and innovation board are basically regarded as the registration system. As an earlier project, the risk of blockchain project is more difficult to control. It is very difficult to rely on human audit for risk control, so the registration system must be implemented for blockchain project in the future.

On this premise, with the standardization of various systems, such as measures like compulsory third-party audit, such as the formulation of various financial standards and compulsory information disclosure standards, such as the regular publication of monthly, quarterly and annual reports, such as the qualification of qualified investors and the warning of account opening risk, we can achieve lenient entry and strict exit, The state focuses on system construction and investigating and dealing with fraud projects, so as to protect investors and innovation and vitality to the greatest extent.

At present, this financing mode relying on civilians without any risk control is obviously unsustainable and it is necessary to suspend it first. After the above measures are improved, the financing system of the blockchain industry will really mature.

The above points I mentioned are the most basic facilities of the whole industry. Accounts, passwords, exchanges, legal currency and financing are inevitable for the development of each project. Before these most basic things are solved, I personally think it is difficult for the whole industry to develop explosively.

Responsible editor: CT

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